U.S. President Donald Trump signed an executive order on the 5th (local time) stating that for certain items that meet conditions, the reciprocal tariff rate could be reduced to 0%.
President Trump noted in the executive order that he could "reduce the reciprocal tariff to 0% for certain imported goods, or modify the tariffs imposed under Section 232 of the Trade Expansion Act (toward a reduction)."
He mentioned that the targeted items include "products that cannot be cultivated, mined, or naturally produced in the U.S., or products that are insufficient to meet domestic demand," such as certain agricultural products, aircraft and aircraft parts, and non-patented pharmaceuticals.
Bloomberg reported that these products include graphite, tungsten, uranium, and gold bullion. It was also noted that special spices and coffee, as well as antibiotics, could be included.
However, he said that such exceptions would be decided based on considerations such as "the scope and economic value of promises made by trading partners in trade agreements with the U.S., America's national interests, and the necessity to address the national emergency that justified the tariffs."
He added that "the imported goods eligible for a 0% reciprocal tariff may vary according to the final agreement with trading partners."
President Trump explained that this executive order was issued following recommendations from government officials, and Bloomberg interpreted it as a measure considering the point that it "confused domestic traders."
President Trump also said he would "refrain from reducing the scope of reciprocal tariffs or related Section 232 tariffs until a final trade and security agreement with trading partners is concluded."
This executive order is set to take effect on the 8th, three days later.
Meanwhile, President Trump's executive order is interpreted as meaning that, like the recent written agreement on trade negotiations with Japan, exceptions for a 0% tariff on some items would apply when a "final agreement" is reached.
Previously, in Japan's case, "most-favored-nation treatment" was specified for pharmaceuticals and semiconductors, while a 0% tariff was maintained for aircraft and aircraft parts. The position is that the current 0% tariff on pharmaceuticals and semiconductors will be maintained until a written agreement is reached with the European Union (EU).